Execution in the market. Rudy Provoost Senior Vice President Royal Philips Electronics CEO Global Sales and Services Consumer Electronics

Transcription

1 Execution in the market Rudy Provoost Senior Vice President Royal Philips Electronics CEO Global Sales and Services Consumer Electronics

2 Consistency and focus in strategy and execution Partnerships with leading retailers Innovative alliances and new channels ifferentiated business models Integrated through-the-line marketing Enhanced supply chain capabilities Global consumer services platform 2

3 Partnerships with leading retailers and innovative alliances in new channels Partnerships with leading retailers Innovative alliances and new channels TO share top 10 Turnover share Top 10 (concentration) 50% 40% 30% 20% Source: Mintel 2003 Growth in Europe G10 In billion est 2004 T 3

4 ifferentiated business models and integrated through-the-line marketing ifferentiated business models Consumer end price Integrated through-the-line marketing Print advertising Price Transport cost PC CoO+ Profit Retail PC CoO+ Profit Retail CE regional CoO+ Profit Retail CE regional CoO+ Profit Retail CE regional CoO+ Profit In-store Poster Profit COGS Supply irect PC Mass Merchant CE Mass Merchant Electronics Retailer Specialty stores 4

5 Enhanced supply chain capabilities and global consumer services platform Enhanced supply chain capabilities Manufacturer Retailer CPFR Integrated through-the-line marketing Collaborative planning Collaborative forecasting Flexible, shipments to order Collaborative replenishment 5

6 A streamlined commercial organization for effective execution across regions and channels Solidify our USA position Capitalize on our stronghold in Europe rive growth in Asia Leverage opportunities in Latin America 6

7 From 2002 till 2003 YT WASHINGTON MONTANA MAINE NORTH AKOTA MINNESOTA NEW HAMPSHIRE OREGON WISCONSIN IAHO SOUTH AKOTA MASSACHUSETTS WYOMING MICHIGAN NEW YORK PENNSYLVANIA IOWA NEW JERSEY NEVAA NEBRASKA OHIO INIANA ELAWARE UTAH ILLINOIS MARYLAN WEST VIRGINIA COLORAO VIRGINIA KANSAS MISSOURI KENTUCKY CALIFORNIA NORTH CAROLINA OKLAHOMA TENNESSEE ARIZONA NEW MEXICO ARKANSAS SOUTH CAROLINA Price Philips Magnavox MISSISSIPPI GEORGIA TEXAS ALABAMA LOUISIANA Added value Basic FLORIA Philips - Magnavox business model Solidify our USA position Capitalize on our market presence and brand franchise Focused account portfolio and partnerships with winning retailers Co-equity programs and category mgmt to drive placement productivity Streamlined Magnavox business model Leverage partnerships Philips-Nike (Sports) Philips-Gemini (Accessories) Philips-irecTV (Set Top Boxes) Execute the business renewal program Organization realignment and right-sizing Process reengineering and outsourcing Streamlined operating models 7

8 Capitalize on Europe Growth G10 In billion % +7% 21% 10% 15.1% 5% 11.6% est Leverage our leadership position with the trade Strategic partnerships with international top-10 Category management for priority categories Integrated e-commerce, supply chain and service platform rive profitable growth through expansion and differentiated business models evelopment of new channels and alliances ifferentiated B2C and B2B business models ouble-digit growth plans in emerging markets Execute the business renewal program Organizational realignment and fine tuning Integrated geographical clusters I.s.o N.S.O.s Streamlined operating models 8

9 rive growth in Asia Philips - MTV Organize for profitable growth in China, and capture opportunities in other key markets Expansion and upgrade of distribution Focused brand investments in priority categories Business plans for high potential markets (India) Structural footprint for sustainable success Intensify alliances and partnerships Alignment and integration of industrial and commercial footprint for synergy and scale Integrated economic model with right balance of local manufacturing and sourcing Execute the business renewal program Organization realignment and right sizing Rationalization support functions Streamlined operating models 9

10 Example WIE Leverage opportunities in Latam Leverage our leadership position in Brazil and brand equity across the region Capitalize on WIE success to drive FTV Focused brand investments in priority categories Extend the retailer partnership programs Capture key opportunities Mexico turnaround plan New Carribean, Platino and Pacific clusters for more effective execution New policies for margin optimization and better working capital management Execute the business renewal program Organizational realignment and right sizing Synergy and scale through shared services and systems, and common infrastructure Streamlined operating models 10

11 Winning formula for execution in the market Partnerships with leading retailers Innovative alliances and new channels ifferentiated business models Integrated through-the-line marketing Enhanced supply chain capabilities Global consumer services platform Solidify our USA position Capitalize on our stronghold in Europe rive growth in Asia Leverage opportunities in Latin America 11

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